AFL-CIO chief to Obama: 'Slate is clean,' take back Social Security offer

By Kevin Bogardus - 12/21/12 02:04 PM ET

AFL-CIO President Richard Trumka on Friday said President Obama should withdraw his offer to cut Social Security benefits following the failure of House Republicans to move their “Plan B” tax proposal.

In a statement, Trumka said with Speaker John Boehner unable to pass his plan on Thursday to resolve the “fiscal cliff,” there should be a reset of negotiations and the White House should offer a proposal that reflects Obama’s election win in November.

“Speaker Boehner’s failure last night should be seen as one thing: a reset button to listen to the will of the American people. The slate is clean and we call on the president to come forward with an offer that reflects the reasons he won the election,” Trumka said.

Since Election Day, unions have been campaigning for a fiscal cliff deal that raises tax rates for the wealthy without cutting entitlement programs such as Medicare, Medicaid and Social Security. Labor was a key ally for Democrats this past election, turning out voters in vital battleground states like Nevada, Ohio and Wisconsin.

Labor and liberal groups have been worried that the president wouldn’t stand firm on entitlement programs as Obama entered talks with Republicans to end the massive tax increases and budget cuts that will go into effect early next year unless Congress acts.

In a search of a deal with Boehner, Obama offered to calculate cost-of-living adjustments (COLA) for benefit programs, including Social Security, with a “chained” consumer price index. That would reduce benefits over time for recipients.

“At this point, cuts to the Social Security COLA to pay for more tax cuts for the wealthiest 2 percent should be off the table. The president and Congress have no obligation to radical Republicans who have no ground to stand on. What they do have is the backing of millions of hardworking women and men tired of being held hostage by far right-wing Republicans who clearly have little interest in governing,” Trumka said.